38. Suppose the current price of gold is $250 per ounce and that the future spot price one year from now is projected to be $350. (7 pts.)

a. If storage costs are 3%, what rate of return do you earn on your gold if you sell it after one year?

b. How could you take your $250 and instead invest in a synthetic form of gold (from an investment perspective)? (What actions would you need to take, including in terms of buying/selling?)

c. Using the storage costs from section (a) above, what would be the forward price of the gold in this case?